Solar Farm Construction Insurance UK | CAR & Delay Cover
Solar farm construction insurance protects a project from the start of works until handover. The core covers are construction all risks for the works, materials and temporary works; delay in start-up for revenue lost if an insured loss pushes back the commercial operation date; marine cargo for panels and equipment in transit; and third party liability. Who arranges each cover is set by the EPC contract, and lenders often specify the programme for financed projects.
Key facts at a glance
- Construction all risks covers the works. Panels, frames, cabling and substations during the build.
- Delay in start-up protects revenue. Lenders often require it on financed projects.
- Cargo is essential. Panels and inverters are often shipped from overseas.
- The EPC contract decides who insures. Owner-controlled or contractor-controlled.
- Handover must be seamless. Operational cover needs to start the moment construction cover ends.
What covers does a solar farm build need?
| Cover | What it protects | Points to check |
|---|---|---|
| Construction all risks | Works, materials and temporary works on site | Theft conditions, testing period and defects cover |
| Delay in start-up | Lost revenue or debt service after an insured delay | Indemnity period and time excess |
| Marine cargo | Panels, inverters and transformers in transit | Link to delay in start-up and storage periods |
| Third party liability | Injury or damage to neighbours and the public | Limits required by landowners and lenders |
| Contractors' plant | Owned and hired plant used on site | Usually the contractor's responsibility |
Once the site is commissioned, the operational programme takes over. Our main solar farm insurance page explains what operational cover includes.
Owner-controlled or contractor-controlled insurance?
In a contractor-controlled programme, the EPC contractor arranges construction all risks and the owner is named as an insured. In an owner-controlled programme, the owner arranges cover for the whole project, which gives more control over terms, claims and delay in start-up. Lenders frequently prefer owner control because delay in start-up must sit with the party that loses revenue. Whichever route you choose, check that the policy names all parties, that subcontractors are included and that waiver of subrogation provisions match the contract.
- Read the insurance clauses. Confirm who arranges each cover and what limits apply.
- Align delay in start-up with finance. Base the sum insured on revenue or debt service, as the lender requires.
- Plan the logistics. Cargo cover should follow equipment from the factory to site.
- Secure the site. Theft during construction is common; see our cable theft guide.
- Arrange operational cover early. Agree terms well before handover.
Delay in start-up and revenue protection
If a fire, storm or transit loss pushes back the commercial operation date, the project loses revenue it was relying on, often to service debt. Delay in start-up responds to that loss, subject to a time excess and an indemnity period. Once the site is operating, the equivalent protection is business interruption; read our guide to solar farm business interruption insurance. If the site includes battery storage, see battery energy storage insurance, and landowners should read our landowner lease guide.
Frequently asked questions
Usually construction all risks for the works and materials, delay in start-up for lost revenue if completion is delayed by an insured loss, marine cargo for panels and equipment in transit, and third party liability. Contractors also need their own employers' and public liability.
It depends on the contract. Some projects use an owner-controlled programme, others leave it to the EPC contractor. The contract should say who insures what, and lenders often prefer the owner to control delay in start-up cover.
It covers the revenue or debt service you lose if an insured loss during construction or transit delays the commercial operation date. It is often required by lenders for financed projects.
Only if marine cargo cover is in place. Panels and inverters are often shipped long distances, and damage or loss in transit can delay the whole project, so cargo cover should be linked to delay in start-up.
Construction all risks usually covers testing and commissioning for a set period. Check the testing period in the policy and make sure operational cover is ready to start at handover.
Construction cover ends and the operational programme should start without a gap. Agree the handover date and operational cover well in advance.
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